$5 Million Multifamily Acquisition in Brooklyn

By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions

A $5 million multifamily acquisition in Brooklyn is in the Freddie Mac Optigo SBL and Fannie Mae DUS Small sweet spot. Most $5M Brooklyn acquisitions are 6 to 18 unit walk-ups or small elevator buildings, often with rent stabilization. Most fund through agency programs at 70 to 75 percent LTV.

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What a $5M Multifamily Acquisition Capital Stack Looks Like

$5M Brooklyn multifamily acquisitions fund as a single agency loan. Freddie SBL versus Fannie Small are the primary alternatives.

Capital Source Rate / Cost Size / LTV Notes
Freddie Mac Optigo SBL 5.65 to 6.05% $5M / 70 to 75% LTV Streamlined SBL
Fannie Mae DUS Small 5.75 to 6.10% $5M / 75 to 80% LTV Slightly higher leverage
NY-area specialty bank 6.85 to 7.85% $5M / 65 to 70% LTV Some specialty NYC banks
Local NY-area bank 6.95 to 8.00% $5M / 65 to 70% LTV Recourse typical

Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.

Who Closes a $5M Multifamily Acquisition Deal

Typical $5M Brooklyn multifamily acquisition sponsors are NYC-area private capital owners with 1 to 5 properties. Brooklyn-specific underwriting items include rent stabilization, Local Law 97, Local Law 11, and 421-a / 485-x.

A Real $5M Example

On a 12-unit walk-up rent-stabilized multifamily in Bushwick, the buyer was a NYC sponsor with 3 prior Brooklyn properties. Freddie Mac Optigo SBL at 5.78 percent fixed 10-year, 72 percent LTV, $4.9M loan amount. Closed in 38 days.

Anonymized. All deal references protect borrower and lender identity.

$5M Multifamily Acquisition Brooklyn FAQ

Yes. Freddie Mac Optigo SBL targets $1M to $7.5M loan size; $5M Brooklyn multifamily is squarely in the sweet spot.
No. Both agencies actively finance rent-stabilized Brooklyn multifamily under SBL with standardized treatment.
485-x is the NYC tax abatement program that replaced 421-a in 2024-2025 for new market-rate multifamily development with affordability commitments.

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